2. Step 1
• Sit down and make a BUDGET
• Know how much you have coming in and
going out every month
3. Debt is Dumb
• Credit card companies and banks will rip
you off and feel good about it.
• You’ll pay interest on purchases you made
years ago.
4. Average Americans
• Keeping up with the Jones’s doesn’t make
any sense (the Jones’s are BROKE!)
• Buy what you can afford. Afford = pay for.
5. Automobiles
• Never lease – its like throwing hundred
dollar bills out the window every week.
• Don’t buy new – major hit when you leave
the lot. 5 years later = loss of 40% of
value.
6. Automobiles Cont.
• Try to have no loan – work your way up to
a nicer car.
• Buy practical cars.
7. School Loans
• Try to pay as you go – you’ll have time to
work at least a part-time job.
• 6 months after you graduate
interest starts accumulating
on your loans.
8. Home Mortgage (loan)
• Put at least a 20% down payment – avoids extra interest.
• Payments no more than 25% of income.
• 15 year instead of 30 year.
• http://www.daveramsey.com/tools/mortgage-calculator/
9. Saving and Investing
• Continuously save for future purchases. Plan
ahead and pay cash when the time comes.
• Start saving early for retirement 10 – 15% of
your income.
• http://www.daveramsey.com/tools/investing-
calculator/
10. Summary
• Make more than you spend – do it on
paper before it happens (budget).
• Pay cash – no loans, credit cards.
• Responsible mortgages.
• Save money regularly for the short term.
• Invest money Regularly for the long term.
11. Financial Freedom
• Not tied down by a job you don’t like.
• Can give money away in huge amounts.
• No worries or concerns about you or your
family’s future.
